Depreciation Report

I have recently purchased a 3 year old property, previous vendor provided the Tax Depreciation Schedule he has obtained (Done by BMT).

1. My question is can I use the same
2. Is there any advantage of getting a new one done at around cost of $700
3. If the proper is under both myself and wife's name, do i have to get the depreciation schedule done for both of us separately of is my Tax account should be able just separate the cost at the time of the tax return

thanks in advance.
 
A friend had the same coy do his report.

I'll have a go to your Q's, lets see now

1. Yes

2. If there are assets that are not included in the report and you cannot ascertain their value. Or if there has been an extension to the property.

3. All the income and expenditure (including depreciation) will result in either a profit or a loss that will be split between yourself and wife.

Always consult a professional (as you obviously do) before making decisions on tax /investment matters.
 
A friend had the same coy do his report.

I'll have a go to your Q's, lets see now

1. Yes

2. If there are assets that are not included in the report and you cannot ascertain their value. Or if there has been an extension to the property.

3. All the income and expenditure (including depreciation) will result in either a profit or a loss that will be split between yourself and wife.

Always consult a professional (as you obviously do) before making decisions on tax /investment matters.

Thanks datto

There were no new additions just stock standard from the first day.

My 3rd question specifically was if I get the depreciation report done in both names some of the assets will fall under less than $300 and can be written off or less than $1000 pool (given asset value divided between two people on the title)
If this is correct this will result in more tax returns?
If so can this be done by my tax accountant using the current report?

Thanks
 
Thanks datto

There were no new additions just stock standard from the first day.

My 3rd question specifically was if I get the depreciation report done in both names some of the assets will fall under less than $300 and can be written off or less than $1000 pool (given asset value divided between two people on the title)
If this is correct this will result in more tax returns?
If so can this be done by my tax accountant using the current report?

Thanks

A separate schedule for each owner can increase deductions (marginally) due to the low value write off. However it may cost more to amend and change. Its something I do routinely with unrelated co-owners rather than spouses. Discuss with BMT who have the data already. They are the experts that I rely on.

The cost for the accountant to continually adjust the schedule is not viable. (Its a printed report) BMT can produce the report using these assumptions built in.
 
Yes, there would be an advantage in getting a new Dep Schedule. On the old one, there would be some Assets that have been written-off. It might be possible to recalibrate them.
And as Paul said, there would be an advantage in getting a Schedule for both owners. It's not a big deal to do that.
If BMT did the original Schedule and nothing in the property has changed, they will sort it out easily.
 
Costs always go up. (Except Coles if you believe them).

I would be very surprised if BMT charged a client to reissue a former report or it would be very nominal. Their customer service is very good. A colleague I work with made enquiries about his IP and cost and BMT indicated they had already done the marketing and selling estimates for the builder a few years back. The schedule for his unit was cheap as a result. BMT could have stitched him up with a standard fee but didn't.
 
Need to re-post on this thread,

One more question about using the previous owners Depreciation Schedule, There is a option of using either "diminishing method" or "Prime cost method" at the start but needs to follow the same method after that?

So the question is do I have to know what method previous owner used if I am going to use his report or can I start with what ever the method I want and carry on with that method.

Thanks guys
 
Need to re-post on this thread,

One more question about using the previous owners Depreciation Schedule, There is a option of using either "diminishing method" or "Prime cost method" at the start but needs to follow the same method after that?

So the question is do I have to know what method previous owner used if I am going to use his report or can I start with what ever the method I want and carry on with that method.

Thanks guys

In most cases you wont know and neither would they which make a joke of the Tax Act requirement :)() to use the former owners schedule. I don't believe you need to use the method they used but you would need to use the written down value etc..(There is a hint in that) ..I may share a tip with you....

If the former owner didn't give you a schedule you would need a new one. And you may find the cost estimates used in that renew and refresh some potential costs and deductions. What would happen if you lost the former owners schedule ?
 
2. Is there any advantage of getting a new one done at around cost of $700

To confirm what others have said, yes. All plant and equipment items are revalued from the settlement date. Given that the largest deductions occur in the first few years you would essentially be kissing these goodbye if you continued using someone else's report from where they left off.
 
Daredevil, you're crazy if you don't just get BMT to sort this out for you. There will be a nominal fee (not $700) but you will recoup far more than that fee in the additional depreciation they find for you.

Scott
 
If BMT did the original Schedule and nothing in the property has changed, they will sort it out easily.

I would be very surprised if BMT charged a client to reissue a former report or it would be very nominal.

I'll back this up but I will have to qualify it.

Because the property is new-ish then it is possible that we can do this but you would have to be certain that no changes have been made in the interim period. If additions have occurred, well, see my previous post in this thread: you are potentially robbing yourself of deductions for the sake of expediency. It's not worth it for either of us to get things wrong.
 
One client contacted BMT for a report and they held the original construction reports for the builder. Their charge was far less than the normal charge and they just asked for interior images to support the final fitout.

You only find out by enquiring.
 
You don't have to use the same depreciation method as the vendor provided you are dealing at arm's length.

For depreciating assets, you will use the cost of acquiring those assets. Usually a contract is silent on these details, but the vendor has provided you with the written down value which may suggest you paid what they were asking for if you did not renegotiate. "Refreshing" to market value is in your interest but against the vendor's interest, so who is correct when the contract is silent ?

For capital works deductions, you cannot "refresh" the cost by getting someone to estimate again where you have been provided with this cost and the deductions claimed as per the requirements in Division 43. Therefore it is up to you to find new capital works expenditure that were not included in the schedule provided.
 
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